Korea’s leveraged ETF expansion aims to stem overseas outflows
Retail flows to US and Hong Kong listings may have exacerbated FX fragility
Leveraged exchange-traded funds on single-name stocks are set to begin trading in South Korea next month, part of a plan by the Financial Services Commission (FSC) to stem outflows to US and Hong Kong markets, which may have contributed to currency weakness.
An April 21 revision to the country’s capital markets rules permits two-times leveraged ETFs on blue-chip names and paves the way for a more diverse range of covered call and active ETFs by allowing the listing of daily index options and
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